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Legal Technology Companies Are Not Law Firms

Legal Tech Is Changing Canada

Legal technology companies are not law firms. Nor do they have lawyers on staff providing legal advice. For example, Almu is not a law firm. We connect people to lawyers in an easy to use way. Read on to discover the best way to tackle your simple legal issues.

The Law Society is the regulator of the legal industry. That legal authority does not regulate legal technology companies. Almu does not answer to the Canadian law societies. Further, the law society doesn’t have legally enforceable powers that would normally be included with the hiring of a competent lawyer.

Legal technology companies
Legal technology companies

You might also be interested in this article: Last Will and Testament Template in Canada

Let’s take this legal scenario as an example

Your mother is incapacitated by her chronic disease. She can’t handle her own personal finances or take good care of herself. Your dad is her caregiver and there is no one else to take care of her. When something occurs to your dad, the family will face obstacles as you try to take care of your mother.

Here is the legal problem that your parents created by using only legal technology companies for their power of attorney documents:

  1. The power of attorney lists only your dad as a legal representative or agent.
  2. They’re not naming any other legal representatives or backups to their current listings of legal agents. What if he gets sick like her, or if he dies first?
  3. How can your sister or you support your mother’s bills?
  4. How to make sure that your mothers provided for if neither you or your sister are the POA?

Sadly, because of her illness, she could not comprehend the issues or sign a new power of attorney. You are now in a complicated legal issue which is going to be stressful and expensive to fix.

What happens if someone dies before the other?

If your mother died first, which isn’t really predictable, then it might be enough to resolve your dad’s power of attorney. However, if he died or became impaired, your mother did not nominate a counterpart agent or legal representative. She’s going to be left without a legal guardian. Therefore, there is a need for an extra step to safeguard your mother.

The people in this situation needed expert legal advice from a lawyer. The amount of money they saved using legal technology companies will be spent several times attempting to fix this case. Further, the dad in this situation should now consult a qualified senior lawyer.

The lawyer will want to know:

  1. Is the agreement or document long-lasting?
  2. Was it signed correctly?
  3. What actions are authorized to take by the POA?

Interesting read: Don’t buy legal documents online without reading this story

How some legal technology companies fail

It was a mistake to use legal technology companies to build their legal documents. Legal technology companies are not law firms. Most of these companies do not have lawyers that work for them. It is basically an automated service over the internet to generate forms based on data received from the user.

Clearway Law does not do this. We connect you to an actual lawyer who will provide you with legal advice. If it’s worth doing, it’s worth doing right.


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One way to remedy this legal issue

The parties might be able to hire a lawyer to create a Living Trust. The father will serve as the sole Trustee (creator). He may also be the original Trustee (administrator). Further, he should also include successor trustees in case he becomes chronically ill or dies.

The trust may mandate that he and your mother are recipients of life. When he dies first, the successor Trustee would have the statutory authority to handle all the properties of the trust. They could use them for the treatment and care of your parents.

Transferring assets to a trust

In order to transfer their assets to the Trust, your mother’s power of attorney must have adequate legal legitimacy. It must state that your dad (as her legal representative) has the authority to make gifts from her assets. Further, he has the authority to transfer her assets or properties to the trust for her benefit.

In that scenario, he might have to go to trial. He may file a petition to become her guardian. Further, he might then petition the court for permission to create a trust for her favor.

Wide perception of saving money using legal technology companies

These legal proceedings would be lengthy and costly and could have been completely disregarded if they would have collaborated with a competent lawyer instead of being improperly guided by legal technology companies.

Legal tech
Legal tech companies

Final recap – legal technology companies review

In Canada, legal technology companies is a popular place to go when Canadian consumers are looking to download a legal form that looks convenient and cost-effective.

In conclusion, many professionals have argued that using such platforms could cost you money in the future. They are inadequate in carrying out your legal activities, and even, in some cases, lead to larger problems later.